why undertAke SPP In LAtIn AMerICA And

10 – Handbook for tHe Inter-amerIcan network on Government Procurement • Improved environmental stan- dards can result in improved air and water quality, and reduced waste—creating healthier environ- ments for entire communities. Financial beneits • SPP can help drive a sustainable economy and provide better value-for-money of goods, services and infrastructure. when the long-term costs of production, use, maintenance, and disposal are considered, SPP makes more eicient use of public resources. • Improved insulation, reduced leakage, and other water and energy saving measures may generate operational savings for utilities in electricity, heating and water. • Choosing more environmentally friendly products may reduce the costs of waste management, pollution prevention and pollution mitigation. choosing products with longer life-spans will reduce future procurement costs. Contribution to global sustainability • Public authorities that adopt SPP demonstrate a commitment to sustainability for public policies that promote sustainable devel- opment. they show a desire to be part of the international move- ment in support of the Sustain- able development Goals SdGs and the post-2015 development agenda. Increased legitimacy • SPP increases the legitimacy of public authorities using public funds for procurement. It also can create or reinforce a positive image for public authorities at home and abroad. Fostering innovation • SPP has great potential to drive innovation. Public procurement represents roughly 20 per cent of GdP and is a powerful driver of change. Public authorities can use procurement to create demand for innovative solutions. Policy coherence • SPP can implement a govern- ment’s industrial, environmental and social policies.

2. why undertAke SPP In LAtIn AMerICA And

the CArIbbeAn nOw? SPP can be a powerful lever for development and growth. It aligns with many of the economic and social priorities of Latin american and caribbean Lac countries. Environmental and social awareness national development plans increasingly relect an apprecia- tion for environmental, social and economic sustainability. environ- mental agencies are better stafed and prepared than in the past, and environmental education at all levels continues to improve. Lac governments are encouraging the mitigation of environmental and social risks in the private sector, but the public sector must also lead by example. SPP provides governments with a valuable tool to demonstrate their commitment to sustainable development. Environmentally friendly goods Green goods and services are already being scaled up across the Lac private sector. Public procurers should support green entrepreneur- ship, using their market power to encourage companies to adopt sus- tainable technologies and processes. Environmental and social regulation many Lac countries are developing increasingly stringent environmental and social regulations. the more procurement policies are aligned with these other regulations, the more efective and mutually- reinforcing they can be. Regional networking on public procurement many courses, workshops and meetings in the Lac region ofer capacity building and knowledge sharing on SPP. these events provide Lac procuring authorities with opportunities to learn about the beneits and challenges of SPP and how to introduce and harmo- nize their own SPP policies and practices with existing procurement regulations. Cost efectiveness In many cases, SPP can save money over business-as-usual scenarios. medium to long-term savings come from increased eiciency of inputs e.g. lower energy demand, reduced water use, fertilizer use etc. or due to the durability and longevity of a product or service e.g. fewer repairs, lower maintenance. In addition, cost savings can come through bulk orders, and through reduced packaging and transport. the prudent use of taxpayers’ money can channel savings towards poverty reduction and other pressing socio-economic priorities. Joining the global cause Procurement professionals around the world are building awareness and expertise in SPP. they have seen many promising outcomes, and initial fears of high procurement costs are disappearing. SPP profes- sionals are learning that greener and more socially responsible products, services and infrastructure bring cost savings across their useful lives—delivering meaningful value-for-money to taxpayers. Se C t IO n 2 IN T E G RA T ING SU S T AINABIlI Ty IN T O T HE P R OC UR EMEN T C y ClE SECTION 2 Integrating Sustainability into the Procurement Cycle Handbook for tHe Inter-amerIcan network on Government Procurement – 11 12 – Handbook for tHe Inter-amerIcan network on Government Procurement

1. bASIC PrInCIPLeS Of tenderIng